Last week I mentioned concerns that the bottoms that were being formed on the SharePlanner Reversal Indicator could not be trusted.

Those bottoms were creating a very sloppy bullish reversal pattern but on the Daily SPRI, there was already one failure to launch, as a result I’ve provided a clear resistance level that needs to be broached in order to take serious any signal on this short-term time frame. 

Here’s the Daily SPRI:

shareplanner reversal indicator daily 7-1-15

On the Weekly SPRI, it gets really messy – clearly not the kind of bottom we have become used to seeing over the years prior to a bullish reversal. That’s why it probably still has a little further to drop, followed by a legit base, before getting the bullish reversal signal. 

Here’s the Weekly SPRI:

shareplanner reversal indicator weekly 7-1-15

The market is on really shaky ground at this time. Two straight days we have seen attempts at a market rally, and both times it has failed to materialize to the extent the pre-market promised. 

So stay nimble, and don’t rush the long positions. Let the market improve first and retake some important technical barriers that have been smashed this week. 

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